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Business & Management

The facts are staggering. Worldwide, 76% of all oil and gas projects run over budget, with an average budget overrun at 52%! Additionally, 55% of all projects are not finished on time, and the average schedule overrun is 37% of the original allotted time.

The costs are astronomical, inspiring the World Economic Forum (WEF) to get involved with the International Association of Oil and Gas Producers (IOGP) to find a solution that lies in standardization.

Modern industrial distributors, especially those working with valves and related equipment, generally have a great reputation for being good at providing services and technical information. Most end users also know they can find a knowledgeable partner in their distributors, which makes it easier to sort through specifications and deal with potential problems before a valve, actuator or control system is even ordered.

While service is generally top-notch, speed and agility on the business side are not necessarily part of distributors’ strengths. Thus, Industrial Distribution conducts surveys each year to determine what is happening in terms of technology use and how they can help distributors take advantage of the options available to them.

It is no news to the valve manufacturing industry, and it is something VMA with its Valve Careers initiative is working to alleviate: As the most experienced and knowledgeable workers retire from manufacturing and process control, business leaders must find ways to fill the positions they leave. But this is an increasingly difficult proposition, as there simply are not enough people with the skills and training who are willing and able to take these jobs.

Risk management of a manufacturing process requires a deep dive into the functional safety, cybersecurity and alarm management lifecycles. Each of these lifecycles is dictated by a different safety standard and traditionally carried out by different teams within an organization. With little communication between the groups, it is a challenge to account for all risks and create a comprehensive event response plan during plant operation.

By integrating the three automation lifecycles, it is possible to ensure awareness of all potential hazards and required risk reduction, improve efficiency and communication, and achieve a complete plant and enterprise view of risk management in an organization.

According to BusinessDictionary.com, the definition of “lean” is “doing more with less by employing 'lean thinking.'” Since the end of World War II, when lean manufacturing was developed and implemented in Japan, the many benefits of manufacturing this way continue to show merit. Improved work flow (which includes people, material, work and information) and reduction of waste are the most commonly touted advantages, and there are a variety of lean manufacturing tools, like Kaizen and 5S. But of course, like any other system, the benefits don’t accrue automatically.